clipped from: www.wired.com   

California Bans Talking While Driving, Sort Of

By David Kravets Email 06.26.08

You can use your phone to check your calendar, contacts, music, email and more -- just don't try using it to make calls.

Also, while talking may be banned, text messaging generally isn't.
That means in California, for example, a motorist can legally fumble around with a handset sending a text message, but will be breaking the law if he holds the phone up to his ear and starts talking.
2,600 people are killed and as many as 330,000 people are injured each year in the United States in cellphone-related driving accidents.
Headsets.com, for example, is offering a free (wired) headset to anyone who sends them a copy of a traffic citation for making calls while driving.
Beginning July 1, adult California drivers talking on their mobile phones without a hands-free device are subject to a $20 fine and a run-in with the law.